Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter D, Problem 33BP

1.

To determine

Compute of Company MT’s current ratio, debt ratio and earnings per share.

2

To determine

Compute current ratio, debt ratio, and earnings per share after evaluating the effect of the each transaction.

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Determining the effects of business transactions on selected ratios Financial statement data of Style Traveler Magazine include the following items: Requirements Compute Style Traveler’s current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places, and use the following format for your answer: Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately a. Purchased merchandise inventory of $49,000 on account. b. Borrowed $127,000 on a long-term note payable. c. issued 2,000 shares of common stock, receiving cash of $107,000. d. Received cash on account, $5,000.
Determining the effects of business transactions on selected ratios Financial statement data of Modern Traveler’s Magazine include the following items: Requirements Compute Modern Traveler’s current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places, and use the following format for your answer: Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. a. Purchased merchandise inventory of $42,000 on account. b. Borrowed $121,000 on a long-term note payable. c. Issued 5,000 shares of common stock, receiving cash of $103,000. d. Received cash on account, $5,000.
Determining the Financial Statement Effects of Accounts Payable TransactionsHobson Company had the following transactions relating to its accounts payable. Use the financial statement effects template to identify the effects (both amounts and accounts) for these transactions.a. Purchases $2,772 of inventory on credit.b. Sells inventory for $3,630 on credit.c. Records $2,772 cost of sales for transaction b.d. Receives $3,630 cash toward accounts receivable.e. Pays $2,772 cash to settle accounts payable.Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.Note: Indicate a decrease in an account category by including a negative sign with the amount.   Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabilities + Contrib. Capital + Earned Capital Revenues – Expenses = Net Income a. Answer   Answer = Answer   Answer   Answer Answer – Answer = Answer   Answer…

Chapter D Solutions

Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)

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